With the global beauty industry continuing to boom at an astonishing rate, it was no surprise that the topic Natural, Organic and Clean – Indie Beauty Trends Impacting Australian Retail featuring three top experts – was one of the most popular sessions at the Naturally Good 2019 Expo.

The Growing Australian market

Panelist Julia Illera from research group Euromonitor set the scene in saying the beauty and personal care market in Australia in 2018 was worth $ 9 billion in retail value sales. This strong performance was slightly higher than growth in 2017 thanks to increased consumer spending per capita.

“This means the outlook for this market is looking positive and expected to grow at a compound annual growth rate of almost 5 per cent over the next five years, or in actual terms by almost $2.5 billion,” Illera said.

Julia Illera - Natural Beauty

Julia Illera, Euromonitor

What’s Driving the Growth

According to Euromonitor, the underlying trend that’s affecting many of today’s themes is that beauty no longer stands in isolation. “It has been converged with health, nutrition and wellness,” Illera said. “Consumers are becoming more health conscious and aspiring to maintain healthier lifestyles and are therefore adopting a more holistic approach to their beauty routines and seeking beauty from the inside out.

“As a result, we have seen movements in the evolution of routines, product variety and the key claims being endorsed from beauty brands. Many brands have attempted to evolve from being simply a beauty brand to being positioned as ‘lifestyle brand.’”

Purchasing Intent

Cindy Luken of Luk Beautifoods, who produce lipsticks sourced from natural ingredients such as fruit, outlined some powerful statistics from Credit Suisse Group and GCI Magazine which show just how serious women now are about natural products:

  • 37% of all women intend to purchase “all natural” beauty products in the next two years
  • 65% of all women aged between 18-34 intend to purchase “all natural” beauty products in the next two years
  • 61% of women and 68% of Millennial women check ingredients on beauty products before purchasing
  • 81% of women buy more natural or organic beauty and personal care products versus 10 years ago
  • 83% are willing to spend more on natural beauty and personal care
  • 70% buy natural/organic beauty or personal care items at least half the time they shop

“In particular, the younger shopper is on a journey of exploration,” said Luken. “It’s a generational shift, a rejection of heritage brands traditionally used by the shopper’s parents. Additionally, ‘Free From’ claims are an important ‘green’ product feature, as are label accreditations when making decisions to purchase.”

Cindy Luken - Natural Beauty

Cindy Luken, Luk Beautifoods

The rise of Australian natural ingredients

One of the most interesting growth areas has been the rise of Aussie natural ingredients. Illera said products containing Australian clay, blue gum oil, Burdekin plum, finger lime, Kakadu plum, lemon myrtle, native peppermint oil, old man’s weed, quandong and wild berry are now giving natural products more cache amongst Australian and increasingly, international consumers. Already popular local brands Sand & Sky, Edible Beauty Australia and Sukin were using such ingredients in their products.

Sustainable packaging a big draw

Flora and Fauna’s Julie Mathers added that one big trend in this space has been the move to more eco-friendly packaging. “Not only are people wanting things wrapped in less plastic, they’re also seeking out products which use less plastic with containers. Some really exciting innovations have been shampoo soap bars, deodorants in cardboard tubes, refillable makeup pots and mascara in glass tubes. It’s important to make as much as a committed difference with your product as possible to create extra interest”

In summary, Illera predicts the local Australian market will only continue to grow and scale, thanks in part to shifting attitudes and increased consumer awareness. “As a result of the convergence between health and beauty, we are beginning to see a shift in beauty standards and how consumers define ‘beauty’. It is now becoming more about the individual consumer’s self-worth and how it makes them feel on the inside, rather than how they look on the outside.”

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